From RealSource... Glenn's Blog

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Intentional Confusion

Did you notice how often it has been mentioned that many of our current real estate, mortgage and economic troubles are due to communication problems?

"The consumer did not understand the loan terms."

"Many homeowners were lead to believe they could afford houses that were really to expensive for them."

"The banks add so many fees that no one understands."

It is suggested that if the consumer understood better, they would have kept themselves out of trouble.  Now, whether or not that is true, I would submit that clearer communication and better understanding would still have been beneficial to many. 

Man with stacks of paperUnfortunately, I think we can all admit that many financial institutions, and their agents and brokers, increasingly created intentional confusion for the expressed purpose of greater profits.  And I believe that such intentionally confusing contracts and terms are disrespectful of the client and of the relationship.

Fortunately, in a good example of improving communication, there has been a big push recently to make complex financial documents less confusing for the customers.  This includes efforts to simplify bank statements, loan applications and credit card terms.

Some financial institution are now taking steps in user-friendly directions. Beginning in December, Bank of America began sending its credit card customers a one-page breakdown of their fees and rates. It doesn't replace the complicated credit card agreement, but the one-page "clarity commitment" outlines what the bank considers the most important information customers want to know.

The new mortgage documents for Good Faith Estimates and HUD-1 used for mortgages have been reworked and are now starting to be required.  These documents really do make it easier for the consumer to understand their closing costs and their loans.  Are they perfect? Of course not.  They have their issues, but they are designed to make it harder for those creating intentional confusion to play their games.

Intentional confusion is, of course, not limited to the financial industry.  That is just a recent visible example.  Intentional confusion exists in all markets and many relationships.  However, those that aim for long-term success work to avoid this confusion and build solid relationships that endure.  And you can't do that when if you are hiding things from others.

 

3 commentsGlenn Phillips • February 04 2010 10:44PM

Are You Just Making Noise?

Small Girl Covering Her EarsMy friend and entrepreneur Brian Cauble had a very interesting tweet recently.  He commented that it was not all the advertising he minded, it was all the noise.  If the ad was of value to him, he'd pay attention!!

First, I agree completely.  Second, it amazes me how many people think their message is of value ONLY because they see the value, not because they have considered the true value to the target audience.

This not only applies to advertising, MLS listings and marketing items.... it applies to all of our communication.  Just because you share a message does not make it of value.  And making your message louder or more frequent does not make it a better message.

For example, I regularly get mail from banks wanting my business.  For the most part, the features, brochures and letter all look about the same.  They are "nice" and clearly they spent alot of money to contact me.  What this unrequested mail does not tell me is this, "What is so much better about this bank that I would make the effort (and cost) to change banks?"

Not once has a great reason to CHANGE banks ever been presented.  Not once.  So why would I care?  Well, I don't.  This stuff is vanity crap to make them feel good about themselves and so marketing can show they did something.  Of course, I did something too... I tossed it in the garbage.  

Granted, if on the odd, rare chance I had become very dissatisfied with my current bank and was considering a change, this information might be of value.  But in 20+ years of business, that has never happened. So the odds of them finding me on the right day is not likely.  What a waste of their money and my time!

Bad messages are an obstacle to consideration as a trusted adviser.  The trusted advisers messages are heard.  But if you have built a reputation of messages (including advertisements) that are just a waste of time or not of value to me, why will I spend time listening to you again?

The difference between your message being of value or just being noise is the true value as perceived (right or wrong) by the audience.  Will your message (or ad) be of enough value for me to listen and act?  Why?  How do you know?  Do you find out what your audience wants or does not want?  Or do you just guess?

If that seems like too much effort, it suggests you are too focused on yourself and not your audience.  That lack of respect is a message that audiences find easy to hear.   And your message is just noise.

So, are you only making noise or building your value?

 

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Related Posts...

Honk, Honk!  Do you know why you honk?

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People Love Their Ideas More Than Puppies and Kittens 

Impress or Success?   A very common mistake in business discussions is forgetting the point of the conversation

 

26 commentsGlenn Phillips • February 04 2010 06:02AM

Resolutions

Party HornsA new year often brings a host of New Year's Resolutions.  As we all know, these are commitments to ourselves, or others,  that are started with the new year until fulfilled (or abandoned).

Resolutions are often great examples of clear communication.  These goals are often relatively simple and easy to understand.  They have a clear start date and most have a clear end date or a means to accomplish success.

What if you made resolutions all year long?  I know people set goals and talk about dreams.  But somehow a "resolution" often gets more thought and, at least for a period of time, more committment.

With thoughtful resolutions, you should have clear goals with a plan of action and defined outcomes.  These resolutions would be an ongoing communication of plans to yourself, and if appropriate, others. 

If you did this and approached your goals with "resolve" and "planning," what could you accomplish that you might not otherwise?    Can you hold yourself accountable?  Can someone else?

It has been often said that goals are simply dreams with a deadline.  Make some dreams come true!

5 commentsGlenn Phillips • December 31 2009 06:54AM

Meaning

Meaning

Significance

Purpose

Reason

Are these clear anymore?  For our personal lives, our profession, our community or our country?

Woman Screaming in MegaphoneThe approach our society now has for the holiday season is a great example of the overload and even confusion we experience all year.  Messages bombard us that each have their own agenda... buy, watch, attend, write, give, decorate, wrap, visit, drink, donate, mail, reflect, consume, volunteer, shop, send, relax, travel, call, eat, remember, cook, wear, share, conserve, exchange.

These are not necessarily bad things.  But the volume of action they collectively demand is not good.  Plus, these demands and requests are often someone else's plan for you, not your plan or priority.  They can easily distract us to act as we are directed, not as we really prefer.  Mindless responses.  Bad habits.  Lack of priority.

I submit that while we may be aware of this message overload more during the holidays, it is with us everyday.  Messages, messages, messages.   Demands, requests, directions.  There are so many that we have learned to tune out most of them.  The problem with that is, without a focus on what you believe is really important, what you tune out or forget can easily be the most important things. 

The loudest or most frequent messages from others, ourselves or society do not make them the most important.

I would not presume to suggest your priorities.  For me, I delight in my wife, pets and family. I enjoy my work and opportunities to help others where I can.  However, I never want the true joys in my life to be lost or postponed from any internal or external pressure to put my priorities last, to feel I must find perfect holiday gifts, have a perfect house, or the best clothes or meet every single demand and request made of me. 

Happy family laughing togetherWe don't get today back to do again.  And we don't get opportunities back to be kind and appreciative of those we love.  New opportunities.  Sure.  But the opportunities lost are not stored away to pull out "someday."  

Every day, people lose close family and friends.  If family and friends are your priority, let "everyday" be the "someday" you are going to be more appreciative and loving.  And it does not even require a gift.

I suggest that you practice each day actively thinking of the meaning, significance, purpose and reasons in your life that are the most important.   If you learn to do this consciously, the other messages will be less likely to overrun your true priorities.  Basically, create your own communication filter and use it actively each day. 

I find that people that really know what they want and value in life are far less distracted by the bombardment of endless messages.   They also seem to be the most joyful people.

Joy to you and yours!

Glenn and Doris

Glenn and Doris at Radio City Music Hall in NYC

 

1 commentGlenn Phillips • December 24 2009 07:55AM

Honk, Honk!

Taxis

Do you know why you "honk?" 

That is, do you understand the targets of your messages? Do you even consider this?

Traffic in big cities is usually very aggressive and often congested.  On a recent trip to New York, I noticed taxi drivers often honk when there is congestion but where the honk has no apparent target.  That is, no clear obstacle that could move and solve the congestion.

It made me wonder if  the drivers are not necessarily honking to get traffic moving but, instead, to make sure the passengers still feel there is a sense of urgency, especially since that meter is running.

After all, a driver that looks like he is out for a leisurely drive while the meter is running is far less likely to get a tip and may even get complaints.  But a driver working to move along quickly... now there is someone worthy of a tip, right?

So it appears to me that a honk may sound the same but really be for two different audiences, each with a different message.  The honk may say, "Hey, get out of my way!" or it may say "See, I'm working hard for you."  Sometimes the honk does both at the same time!

One other thing I noticed was that while taxis may honk periodically, they generally don't honk non-stop.  A short occasional honk has a message that is heard by others.  But almost endless "honk, honk, honk" is actually just an annoyance with no real message except frustration (or maybe even stupidity?).  And it soon loses whatever message of value it was supposed to convey.

So what does this have to do with real estate and better communication? 

Consider that we all "honk" (i.e., have messages).  "Buy this house, agree to this listing, accept this offer, don't overprice."  They are all "honks" and like a car horn, may spur action or may be ignored. 

Sometimes our "honks" may sound the same but can serve more than one audience with a different intent.  So be careful. What you say to a client may have a different meaning to an agent... or vice versa.

And remember to be mindful that you should not "honk" your message endlessly and continually, especially if you are already being ignored.  Those "honks" really don't produce desired results.  The become background noise, ignored by those on the street at they focus on the messages they are willing to hear.

To be effective, honk you message but be sure you know why you honk and who you are honking at (or for)!  "Honk" with a purpose, not mindlessly.

Honk, Honk!

5 commentsGlenn Phillips • December 07 2009 05:33AM